It is undeniable that the COVID-19 crisis has become the stepping stone leading to a surge in online grocery shopping trends across Indonesia. Previously online shopping trends among locals were mostly limited to buying clothes and gadgets but now the demand has expanded to grocery items as well. Indonesian citizens, specifically in urban metropolitans, have been actively buying food and grocery items online since the pandemic outbreak to avoid the risk of physical contact and a timely delivery right at their doorstep.
In its latest survey, world’s leading consulting firm, McKinsey & Co discovered that Indonesian consumers plan to shop more online for most categories, especially groceries which falls under household essentials . This report holds true as the technology and logistics infrastructure in Indonesia has seen rapid increase in the last few years and COVID pushed the trend a step further.
Capitalising on this trend, Sarah Humaira, VP and Head of Marketing, Zilingo says “As one of the players in the Indonesian B2B space, Zilingo Trade hopes to advise businesses in the FMCG and Online Grocery fields to help them market their product better and support in their procurement process to meet the rising online grocery shopping demands. As a one-stop business solutions provider, Zilingo Trade has already been helping provide accessibility to brands and businesses to help them scale to the next level.”
Sarah shares some key tips for grocery businesses to scale and thrive in the face of the growing consumer demand now:
Allure New and Retain Existing Customers with Promos
One of the customer profiles which is actively involved in online grocery shopping is a homemaker and what is more interesting to them than promotions? In fact, one of the main attractions of online grocery shopping for Indonesian housewives besides the demand for quality products is the creativity of promotions offered, such as free delivery, bundling packages, and discounts. Sarah advises, ”If your business is selling food and beverages online, don't forget to provide attractive promotions once in a while to lure your loyal customers to your storefront.”
Understand Where Your Target Market is Located
A survey conducted by consulting company Deloitte shows that the penetration of online grocery shopping trends in Indonesia is still limited to top tier cities, especially metropolitan areas such as Jabodetabek, Bandung, Surabaya, Bali, and Medan . Because of the urban population’s busy lifestyles online shopping experience is practical and convenient and this proves to be a good business opportunity. “If you want to open an online food or beverage business, you may concentrate in big cities first. After your business gets good responses, only then consider expansion to other areas,” said Sarah.
Quality Assurance fosters your business
Be careful and take utmost care to not fail your customer trust by selling poor quality goods online especially with regards to everyday grocery items, where the customer expects only the best for their household and has no means of checking out the products prior to purchase. It is seen that customers who buy products for daily and essential household items are way more loyal if you always try to maintain the quality of the products that you sell.
Customize your business offerings as per Consumer needs
According to the same Deloitte survey, health awareness has been increasing in the Indonesian market in the past few years, especially for those who have household income of more than 7 million in specific cities as Jakarta and Surabaya . “Consumer health awareness influences their behavior in choosing grocery products, this is particularly relevant since COVID-19 outbreak where the importance of building immunity has been stressed enough. Hence, there lies a great potential for starting health-conscious food and beverage businesses with customized product lines, such as selling herbal, organic, low calorie, and gluten-free products,” explained Sarah, who is also a health-enthusiast.
Online shopping offers wide options to consumers, best bet for businesses now
One of the main reasons for the increasing trend of online grocery shopping in Indonesia is because buyers get to openly compare prices, quality, service, and promotions between various sellers. The days of largely over-priced items available online are long gone. As online platforms allow grocery supply chains and the competition between sellers to be more honest and transparent, it enables consumers to choose products that have the best value.
“This has also become the main vision of Zilingo Trade as a B2B marketplace, such that the supply chain is not just restricted to fashion but also all product categories, including food and beverages, are made honest and transparent. On our platform, a variety of trusted food and beverage sellers can compete in a healthy manner, ranging from the MSMEs scale to large FMCG brands such as Mayora and OT Group. Thus, the maximum benefits can be experienced by potential buyers and sellers as well,” added Sarah.
This is where Zilingo Trade comes to help brands and businesses, especially those in the FMCG and Online grocery fields to grow and expand their business through our whole-package business services, ranging from procurement, sales, marketing, financial, to logistics services. To know more about our wide range of products and business solutions, visit zilingotrade.id.